CENTRAL PUBLIC PROCUREMENT STRUCTURES Recent developments and the way forward

1. CENTRAL PUBLIC PROCUREMENT STRUCTURESRecent developments and the way forward Marian Lemke Piotr-Nils Gorecki Regional Conference on “Public Procurement Reform in West Balkan« Pristina 16 September 2008

2. Ohrid to Pristina • Less administrative waivers • Separation from review function • More independence • More staff • Reform drivers

3. Central procurement functions identified • Policy and legislative functions • International co-ordination • Monitoring and control • Advisory and operations’ support • Publication and information • Professionalisation and capacity-strengthening • Development and procurement co-ordination

4. Functions Not To Be Addressed • Complaints Review and Remedies systems • Central Purchasing Functions

5. Core and supplementary functions Core functions (obligations under EU membership) • Policy and legislative tasks • International coordination • Monitoring and control Supplementary functions • Support and advisory tasks • Publication and information • Capacity strengthening • Development and coordination

6. Policy and legislative functions • Define the national strategy of pp system • Drafting/amending primary public procurement law (lead working group) • Other legislative activity relevant for public procurement • Determine the thresholds • Implementing regulations • Operational guidelines • Model tender and contract documents

7. International co-ordination • International regulatory activities (WTO/GPA, UNCITRAL) • EU advisory committees • European Commission – contact point for enforcement procedure • Cooperation with other PPOs

8. Monitoring and control • Collection of statistical information (including the data required by the EU) • Annual report to the government • Authorizing function (approvals for less competitive procedures) • Management of official lists (contracting authorities, economic operators, procurement officers) • Blacklists (?)

9. Advisory function • Helpdesk • Guidance system (internet-based) • Publication of commentaries, interpretations

10. Publication of procurement information • Publication of contract notices (collection, processing and publication on-line) • Submission of notices to TED

11. Capacity strengthening • Organisation of training • Elaboration of training materials • Training of trainers • Certification of trainers • Certification of procurement officers (?)

12. Procurement co-ordination • Co-ordination of framework agreements • Co-ordination and support of concessions/PPP projects • Development and co-ordination of e-procurement • Introduction of performance measures • Development of procurement techniques (eg performance-based technical specifications) • Innovations

13. Central procurement structures • Centralised procurement structure = high concentration of procurement functions allocated to a few central institutions: 11 MS • Semi-centralised procurement structure = mixed concentration of procurement functions allocated to a number of institutions: 9 MS • Decentralised procurement structure = dispersed concentrationof procurement functions allocated to a range of bodies within the public administration: 2 MS

14. Classification of PP structures • The group of new member states has all a centralised structure (centrally driven approach) • The group of old member states has semi- or decentralised structures (peripherally driven approach)

15. Some Characteristics • Central PPOs usually the responsibility of the Ministry of Finance, the Ministry of Economy, or the Ministry of Works. • Legal foundation is frequently the public procurement law or administrative law. • Some MS have established public procurement offices or agencies, which are • given a more independent status under parliament or directly under the government, • while others act as departments within ministerial structures. • Some functions of a more operational nature are carried out by publicly or privately owned firms.

16. Government/ Parliament Executive Board Management Advisory Council Local Branches Core Functions Primary Policy & Legislative Functions Secondary Policy & Regulatory Functions Control & Monitoring Functions International Co-ordination Functions Supplementary Functions Development & Procurement Co-ordination Advisory & Operations Support Professionalisation & Capacity Strengthening Publication & Information Non-applicable Functions Central Purchasing Review and Remedies GENERIC INSTITUTIONAL MODELCENTRAL PUBLIC PROCUREMENT STRUCTURE

17. Central Institutional Capacity • The total accumulated public procurement capacity may be strong if all actors in the society are included e.g.: • Associations of local and regional authorities, • Large contracting entities and utilities, • Training institutions, and • Law firms • The number of staff in central procurement institutions varies among MS: • Size of country and economy. • ‘Mix’ with tasks other than procurement tasks.

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